Tata Consumer Products Ltd Reports Q1 FY2024 Results with 16% Revenue Growth

On July 30, 2024, Tata Consumer Products Ltd released its financial results for the quarter ending June 30, 2024.

Revenue from operations increased by 16% (16% in constant currency) compared to the same quarter last year. Organic growth, excluding new acquisitions like Capital Foods and Organic India, was 10%. However, profit before exceptional items and tax decreased by 6% to ₹465 crore due to higher finance costs and amortisation charges despite improved operating performance. The group’s consolidated net profit fell to ₹289 crore, mainly due to increased exceptional items and reduced profits from Associates and Joint Ventures.

Key Business Updates

For the quarter, Tata Consumer Products Ltd. saw a 6% increase in revenue from its India Beverages segment, with just 1% of this coming from organic growth due to a challenging summer. Coffee performed exceptionally well, showing a 28% revenue growth.

Nourishco’s Ready To Drink business saw a 7% revenue increase this quarter. New products like Tata Spring Alive Water and Himalayan Saffron performed well. In the India Foods segment, revenue grew by 30% overall, with 14% coming from organic growth, maintaining a strong double-digit growth trend. Salt revenue rose by 9%, driven by significant volume growth.

The premium salt range also saw a 35% increase this quarter. Tata Salt’s ‘Namak ho Tata ka, Tata namak’ campaign, featured prominently during the IPL 2024, was the most memorable campaign regarding ad recall. The Tata Sampann portfolio continued to perform strongly, growing 37% this quarter. Growth businesses, including Capital Foods and Organic India, now represent 29% of the India business.

Sales and Distribution and Recent Acquisitions

The company has strengthened its sales and distribution infrastructure by implementing split routes, which is expected to increase the number of salespeople by about 35%. Channels of the future, such as e-commerce and Modern Trade, drove growth, with e-commerce up 61% and Modern Trade up 28% this quarter.

International Business and Tata Starbucks Updates

For the quarter, Tata Consumer Products Ltd.’s International business saw a 10% revenue increase, excluding acquisitions of Capital Foods and Organic India, and an 8% increase in constant currency. Profitability also improved significantly due to structural changes and pricing strategies.

Tata Starbucks added 17 new stores and expanded into 4 new cities, bringing the total to 438 stores across 65 cities.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.